Rupee likely to depreciate this week, may cross 80 per dollar again; crude price decline to elevate pressure
时间:2024-06-02 03:01:20 阅读(143)
By Raj Deepak Singh
Rupee traded flat in the week despite strong US dollar and weak inflation data from the India. The relative resilience was seen due to persistent foreign funds inflows in domestic equities and drop in crude oil prices. Dollar index edged higher as minutes from the Federal Reserve’s July meeting showed, that Fed officials remained committed to get inflation under control and the U.S. central bank could raise rates further to tame inflation. Further, strong economic data from the US supported dollar. The number of Americans filing new claims for unemployment benefit fell to 250,000 the week that ended August 13th, well below market expectations of 265,000.
Additionally, the Philadelphia Fed manufacturing index in the US rose to 6.2 in August of 2022 from -12.3 in July, returning to positive territory after two consecutive negative readings and above market expectations of -5. Moreover, dollar was supported by rise in US 10 years bond yields. We expect rupee to depreciate and reach the level of 80.20 this week. Further, sharp rise in US dollar may put some pressure on Rupee but persistent foreign funds inflow should ease out pressure. Investors will closely watch major economic data from the US to get more clarity.
United States second quarter GDP is expected to remain unchanged at -0.90%. USDINR is trading in resistance and support wedges by making higher high and lower low pattern. The pair is expected to continue trading in the same pattern and may surpass the hurdle of 80 to continue its upward trend towards the 80.20 this week.
For Monday, Rupee may depreciate amid strong US dollar index. Further, rupee may be pressurised by weakness in domestic equities market. However, sharp depreciation may not be there due to drop in crude oil prices. USDINR (Aug) is likely to trade in the range of 79.90-79.70.
Also Read: Dollar liquidity, inflation among key drivers for Rupee; check INR performance against major currencies
(Raj Deepak Singh is an Analyst – F&O, Currency, and Commodities at ICICIdirect. The views expressed are the author’s own. Please consult your financial advisor before investing)
上一篇:Jio Financial Services to be excluded from NSE indices from September 7
下一篇:With Sensex, Nifty up about 50% from March lows, where should you invest now- Here are hot sectors
猜你喜欢
- Landmark Cars IPO shares see disappointing debut, fall 10% after negative listing
- Zomato share price rallies 18%, mcap tops Rs 50,000-cr; Here’s what’s fueling the rally
- Jefferies Maintains ‘Buy’ recommendation on ITC, sees 17% upside
- Wimbledon 2023- Roger Federer, Andy Murray meet on Day 2! One steals heart, the other takes the match – See Photos
- L&T Technology Services shares fall 4 pc as company cuts revenue guidance for FY24
- Will Nifty make a new high above 21,500- See GIFT Nifty, FII data, F&O ban, crude, more before market opens
- US Stocks- Nasdaq, S&P 500 rise on upbeat forecasts from Apple, Amazon
- World Test Championship- Team India climbs to top of the table after dominating South Africa in second test
- ‘2023 may see a period of consolidation for Indian equities’